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Money JetBlue selects A220 over Embraer plane

20:10  11 july  2018
20:10  11 july  2018 Source:   msn.com

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JetBlue selected the A 220 over the Embraer E190-E2, an updated version of the aircraft it currently operates. The carrier is ordering 60 of Airbus’s A 220 jets , the freshly re-christened plane formerly known as Bombardier’s C Series. Tuesday’s sale is the first the flexibility to alter the order and the A

JetBlue selected the A 220 over the Embraer E190-E2, an updated version of the aircraft it currently operates. The A 220 's triumph over Brazil's Embraer SA sets the stage for a fierce competition between Airbus and Chicago-based Boeing Co in the narrowbody market. Both major planemakers have

a large passenger jet flying through a cloudy blue sky© Provided by thecanadianpress.com

MONTREAL - JetBlue Airways Corp. says it placed a large order for the Canadian-developed A220 because of the commercial aircraft's economics rather than Airbus taking majority control over the aircraft's joint venture with Bombardier Inc.

Chief financial officer Stephen Priest says the recently closed marriage between the two aircraft manufacturers was a secondary factor in the 15-month selection of the formerly named C Series.

JetBlue became the first company to announce a purchase deal for the aircraft under the new name, when it ordered 60 of the Airbus A220-300 aircraft for delivery starting in 2020 with the option of another 60 starting in 2025.

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In conjunction with the A 220 order, JetBlue also converted its remaining 25 A320neo orders to the larger A321neo model and smoothed out the delivery schedule over the Over the next few years, the planned fleet transition from the E190 to the A 220 will increase JetBlue 's unit costs due to various

Five planes are scheduled to be delivered in the first year, ramping up to a high of 22 in 2024.

The firm deal announced late Tuesday is valued at US$5.4 billion at list prices, but airlines typically receive large discounts.

JetBlue will become the first American airline to fly the larger A220 with 130 to 140 seat. Delta Air Lines Inc. ordered 75 A220-100s.

The U.S. low-cost airline says it could switch some of its order to the smaller planes A220-100 with 120 seats.

The A220s will replace 60 Embraer E190 planes and deliver a 40 per cent fuel savings.

JetBlue also considered the new Embraer 195 E-2 planes. Priest says the competition was very tight but the aircraft selected aligns with the other Airbus planes in its fleet.

Priest says he's confident that the planes will be delivered on schedule from an Airbus facility in Mobile, Alabama that assembles the A321s and declined to say how it would respond to delays in building the new assembly line.

Companies in this story: (TSX:BBD.B)

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